PVI Sun Life to build on its strong start and continue growing in step with Vietnam by leveraging Sun Life Financial's global expertise in life insurance and pensions and PVI's strong brand and local presence
Sun Life Financial to increase its stake in PVI Sun Life from 49% to 75% by acquiring an additional 26% of the equity in the Company from PVI Holdings
TORONTO, Nov. 12, 2015 /CNW/ - Sun Life Assurance Company of Canada ("Sun Life"), a wholly owned subsidiary of Sun Life Financial Inc. (TSX/NYSE: SLF) and PVI Holdings (HNX: PVI, "PVI") today announced an agreement whereby Sun Life will increase its equity ownership in PVI Sun Life Insurance Company Limited ("PVI Sun Life" or the "Company"), their joint venture insurance company in Vietnam, from 49% to 75% by acquiring from PVI an additional 26% of the charter capital of the Company. The transaction is subject to regulatory approvals in Vietnam and Canada and is expected to close in the first quarter of 2016.
PVI Sun Life benefits from both parties by leveraging Sun Life's global expertise and experience in life insurance and pensions and PVI's strong Vietnamese brand, reputation, customer base and distribution strengths.
"As we increase our ownership in PVI Sun Life, we look forward to further sharing Sun Life's enterprise and regional Asian expertise and capabilities with the Company," said Kevin Strain, President of Sun Life Financial Asia. "We are also delighted to continue our successful partnership with PVI. We view this investment as a confirmation of our long-term commitment to PVI and to Vietnam. We are committed to helping the Vietnamese people achieve lifetime financial security by offering a strong suite of insurance and wealth management products."
"PVI is pleased to be continuing its successful partnership with Sun Life and will remain deeply involved in PVI Sun Life both as a strategic investor and as a distribution partner," said Bui Van Thuan, CEO of PVI.
Vietnam has been one of the fastest growing economies in Asia in recent years and the life insurance and pensions industry is expected to continue experiencing strong growth. Since its launch in 2013, PVI Sun Life has established itself as the sixth largest life insurance provider and a market leader and industry pioneer in pensions.
Terms of the transaction were not disclosed.
In this Forward-Looking Statements section, "we", "our" and "us" refers to Sun Life Financial Inc. and its subsidiaries, joint ventures and associates.
Certain statements in this news release are forward-looking, including, but not limited to, (1) the expectation that PVI Sun Life will enter into an exclusive distribution agreement with PVI, (2) the expectation that PVI will remain a strategic shareholder in PVI Sun Life, (3) the growth prospects of the life insurance and pensions industries in Vietnam, (4) the expected source of funding for the transaction, and (5) other statements that are not historical or that are predictive in nature or that depend upon or refer to future events or conditions. All such forward-looking statements are made pursuant to the "safe harbour provisions" of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. The forward-looking statements in this news release represent our current expectations, estimates and projections regarding future events as of the time of this news release and are not historical facts. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties and are based on key factors and assumptions that are difficult to predict, including, but not limited to, the assumption that the transaction will be completed.
Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release.
Forward-looking statements are presented to assist investors and others in understanding our expected financial position and results of operations as at the date of this news release, as well as our objectives for the transaction, strategic priorities and business outlook following the transaction, and in obtaining a better understanding of our anticipated operating environment following the transaction. Readers are cautioned that such forward-looking statements may not be appropriate for other purposes and undue reliance should not be placed on these forward-looking statements.
Information about risk factors relating to us can be found in the annual information form of Sun Life Financial Inc. for the year ended December 31, 2014 under the heading "Risk Factors" and other regulatory filings filed or furnished to Canadian and U.S. securities regulators available at www.sedar.com and www.sec.gov.
About PVI Sun Life
In March 2013, PVI Sun Life Insurance Company Limited was founded by JSC PVI (PVI Holdings) and Sun Life. With the combined strengths of PVI - successful insurers in Vietnam - and the leading and global experience of Sun Life in the field of life insurance, PVI Sun Life aims to provide financial solutions to help our customers enjoy a secure and brighter future.
Since its launch, PVI Sun Life has already established itself as the 6th largest life insurance provider and a market leader and industry pioneer in pension. For details please visit www.pvisunlife.com.vn.
About Sun Life Financial
Celebrating 150 years in 2015, Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of September 30, 2015, the Sun Life Financial group of companies had total assets under management of $846 billion. For more information please visit www.sunlife.com. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.
SOURCE Sun Life Financial Inc.
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